It’s not an easy time to run a climate tech company in the U.S. But data from the first half of the year shows something surprising: Despite the changes in federal policy, investment in these companies is growing.
The State of Climate Tech, a new global report from the market intelligence platform Net Zero Insights, found that American climate tech companies raised $12 billion in equity so far in 2025—more than $2 billion more than in the first half of 2024. For the full year, it’s possible that equity investment may be 12% higher than it was last year under Biden.
Funding from grants dropped, unsurprisingly, as the new administration froze spending. But debt funding was up $2.2 billion compared to the same period in 2024.
There were fewer equity deals in total, but the ones that did go through were big. TerraPower, the nuclear company cofounded by Bill Gates, raised $650 million. (That’s not to be confused with Terra CO2, a startup that makes a low-carbon cement alternative, which raised $124 million). Helion, a company that aims to break ground on the world’s first fusion plant this year, raised $425 million. Tae Technologies, another fusion energy startup, raised $150 million. The list goes on.
Some companies are rebranding themselves: instead of focusing on their climate benefits, they’re talking about things like energy security. “The core themes didn’t change, so these companies kept getting money,” says Federico Cristoforoni, one of the cofounders of Net Zero Insights. Others that have an AI component are making that the bigger part of their sales pitch, rather than climate.
There’s still clear demand for some of the products and services that climate tech companies offer. For new data centers that need power, for example, it can take as long as seven years to get gas turbines. Alternatives have advantages even without considering the benefits for pollution. Exowatt, a company that makes thermal energy storage for data centers, closed a $70 million Series A round in April.
Corporations that are still trying to hit emissions goals—even if they’re greenhushing those commitments—still need technological solutions. And in some cases, new sustainable products are as cheap, or cheaper, than existing polluting products.
One investor told Fast Company earlier this year that he focuses exclusively on products like this that have a clear sales proposition even without considering any environmental benefits. “One piece of the puzzle for us is, do the economics work, or are you asking somebody to pay a green premium?” says Mike Winterfield, founder and managing partner at Active Impact Investments, one of the investors behind Zeno, a startup from an ex-Tesla leader that makes electric motorcycles. “We like stuff that’s cheaper, better, faster already for the consumer, and the environment is a drag-along benefit, so there isn’t sales friction.”
Of course, any technology that still has a “green premium” is at a disadvantage now, as government incentives begin to disappear. First-of-a-kind tech, that may have gotten support from federal funding in the past, may be less likely to get off the ground. And as policy has shifted, investors are now more cautious overall. The industry likely could have been growing faster now with someone else in office. But the data shows that it’s doing better than might be expected.
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